Economics

Summary

DoorDash is partnering with Buy Now, Pay Later service Klarna to let customers divide fast food purchases into interest-free installments or defer payments to align with paycheck schedules.

This expands BNPL services beyond their typical use for large purchases like furniture.

The partnership comes amid record BNPL usage ($18 billion during last holiday season) and as Americans face increasing debt levels, with serious delinquencies on auto loans and credit cards at 14-year highs.

Klarna plans to list on the NYSE soon, capitalizing on the BNPL market projected to exceed $160 billion in seven years.

KEY POINTS

• Data from Edmunds shows that Tesla owners have been trading in their vehicles at record levels since CEO Elon Musk joined Trump’s White House.
• March represented “the highest ever share” Edmunds had seen for Tesla trade-ins toward new or used cars from brands sold at auto dealerships.
• “Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” Jessica Caldwell, head of insights at Edmunds, wrote in an email.

Summary

Multiple Tesla executives and board members, including James Murdoch, Robyn Denholm, Kimball Musk, and CFO Vaibhav Taneja, have sold over $100 million in company stock amid a 50% price decline since December.

Tesla's market cap has dropped $800 billion, reducing Elon Musk's net worth by approximately $100 billion.

The selloff coincides with consumer backlash against Musk's role in the Trump administration as head of DOGE.

Summary

Tesla shares fell 1.7% Thursday after Commerce Secretary Howard Lutnick urged Americans to buy the stock on Fox News, calling it "unbelievably cheap."

His comments sparked controversy as cabinet secretaries rarely endorse individual stocks.

Despite Lutnick’s endorsement, Tesla's stock is down 42% this year amid dealership protests and declining brand value.

Wedbush analyst Dan Ives labeled Tesla’s situation a “crisis,” urging Musk and the board to address mounting concerns. Cantor Fitzgerald, formerly led by Lutnick, had upgraded Tesla shortly before his remarks.

Summary

Tesla faces a "brand tornado crisis" as it recalls 46,000 Cybertrucks in the US over a potential exterior panel detachment.

Dan Ives of Wedbush warns that Elon Musk’s involvement with Trump and the controversial DOGE is damaging Tesla’s brand and stock value, down by a third this month.

Vancouver Auto Show dropped Tesla due to safety concerns amid global protests.

Ives urges Musk to balance his Tesla and DOGE roles to restore confidence, as protesters plan 500 demonstrations worldwide on March 29.

Summary

The Financial Times reported a $1.4 billion discrepancy in Tesla’s accounting, raising concerns over missing capital expenditures.

Tesla reported spending $6.3 billion on property and equipment in the second half of 2024, but asset values increased by only $4.9 billion. Experts find no clear explanation for the gap.

Additional red flags include Tesla holding $37 billion in cash while raising $6 billion in new debt and not conducting share buybacks despite $15 billion in operating cash flow.

Analysts warn of parallels to past financial scandals like Wirecard.

Summary

Millennials faced economic struggles, but Gen Z’s prospects are even worse. Rising rents, stagnant wages, and unrealistic social media expectations have left many feeling hopeless.

Despite setbacks, many millennials eventually secured homes and careers, albeit with debt and parental help. However, Gen Z faces an even harsher reality, with skyrocketing living costs and declining mental health.

Older generations dismiss their struggles as entitlement, but the gap between expectations and reality is wider than ever.

Without change, Gen Z’s financial future looks dire.

Summary

A major early Tesla investor, Ross Gerber, has called for Elon Musk to step down as CEO unless he abandons his role in Trump's DOGE.

In an interview with Sky News, Gerber declared Tesla is "absolutely in crisis," citing neglect of the business while Musk pursues widening interests.

Tesla's market value has plunged over $800 billion since December amid slumping demand, Chinese competition, potential trade war impacts, and controversy surrounding Musk's government role.

Gerber claims Musk's divisiveness has "destroyed" Tesla's reputation despite having "the best product in the marketplace."

Summary

The Federal Reserve kept interest rates at 4.5% but warned of rising economic uncertainty, partly due to Trump’s tariff policies.

The Fed lowered its 2025 GDP growth forecast from 2.1% to 1.7% and expects inflation to approach 3%.

Fed Chair Powell said tariffs are likely contributing to inflation but called the rise “transitory.”

Markets reacted with mixed signals. Analysts see signs of stagflation, with slow growth and rising prices.

KEY POINTS

• The Bank of England left interest rates unchanged on Thursday, keeping the central bank’s benchmark rate at 4.5%.
• In a statement, the central bank said that its Monetary Policy Committee voted in favor of leaving rates unchanged with an 8-1 majority.
• The decision had been widely anticipated by markets.

Summary

China criticized the proposed $22.8 billion sale of CK Hutchison’s Panama Canal ports to a BlackRock-led consortium, calling it "economic coercion."

Hong Kong’s leader also condemned "bullying tactics" in global trade. Beijing reportedly ordered regulators to examine the deal for security or antitrust concerns.

CK Hutchison’s shares fell 5% amid uncertainty over whether the sale will proceed. The deal includes the Balboa and Cristobal ports and stakes in 43 other ports worldwide.

Analysts say China’s opposition could derail the transaction.

Summary

Pharmaceutical companies are urging the Trump administration and EU officials to exclude medical goods from new tariffs, warning of higher drug costs and reduced access to life-saving medicines.

Industry leaders argue tariffs would contradict U.S. healthcare priorities and are negotiating tax breaks for expanded domestic production.

Companies like Novo Nordisk and Merck may face short-term impacts but are investing in U.S. manufacturing. Analysts say drug price hikes could burden Medicare and Medicaid.

The industry's response from Washington remains unclear, while EU officials have yet to announce countermeasures.

Summary

Transportation Secretary Sean Duffy said Boeing has lost public trust after the 737 MAX mid-air emergency in January 2024 and two fatal crashes in 2018 and 2019.

He warned that strict oversight will continue, and the FAA will not lift the 38-plane monthly production cap yet.

Boeing’s leadership is making improvements, but Duffy insists they need “tough love.” Boeing faces a criminal fraud charge and a $243.6 million fine for breaching a 2021 agreement.

Summary

Trump's 25% tariffs on steel and aluminum imports, including $1 billion from Australia, echo the disastrous 1930 Smoot-Hawley Tariff Act that deepened the Great Depression.

Despite claims that "tariffs are a tax cut for the American people," markets have responded negatively with the Dow Jones falling 10% since February.

Australia has declined to impose retaliatory tariffs, but other nations like Canada and Mexico have responded with their own import taxes.

Economists fear Trump's planned expansion to additional sectors could trigger a global trade war, reversing decades of economic liberalization.

The high level of geopolitical and policy uncertainty at present brings with it substantial risks to the baseline projections. One possible risk is the escalation of trade restrictive measures. An illustrative exercise, where bilateral tariffs are raised further on all non-commodity imports into the United States with corresponding increases in tariffs applied to non-commodity imports from the United States in all other countries, shows that global output could fall by around 0.3% by the third year, and global inflation could rise by 0.4 percentage points per annum on average over the first three years. The impact of these shocks would be magnified if policy uncertainty were to increase further or there was widespread risk repricing in financial markets. These would add to the downward pressures on corporate and household spending around the world.

Summary

Trump’s aggressive economic policies—tariffs, mass deportations, and drastic government spending cuts—are pushing the U.S. toward recession.

Markets have tumbled, investment is slowing, and consumer confidence is declining.

Economists warn his $770 billion tariff plan, deep job cuts, and immigration crackdowns could cripple growth.

While Trump continues to reshape the economy, approval ratings are slipping as Americans feel the strain.

Summary

Treasury Secretary Scott Bessent said he is “not worried about the markets” despite a sharp downturn, calling corrections “healthy” and warning against unchecked growth.

His remarks follow a volatile week where the Dow dropped 890 points (2.1%) amid recession concerns.

Former Treasury Secretary Larry Summers now sees recession odds “close to 50/50,” citing poor economic policies. Stocks have fallen due to weak economic data and shifting Trump administration tariff policies.

Summary

U.S. bourbon makers are struggling with uncertainty as the Trump administration imposes, delays, and revokes tariffs.

Brough Brothers CEO Victor Yarbrough says fluctuating trade policies make planning impossible. A planned expansion into Canada was halted after Trump imposed 25% tariffs, which prompted retaliatory Canadian trade restrictions.

The EU also announced steep tariffs on bourbon in response to U.S. metal duties. Kentucky lawmakers warn tariffs will harm exports and raise prices.

Industry leaders fear long-term damage to a sector that thrived under free trade agreements.

Chinese officials also want consumers to spend more to spur economic growth, but they're not willing to provide a lot of support.

Summary

The U.S. stock market has lost over $5 trillion in value in three weeks as the S&P 500 fell 10% from its record high.

The decline, driven by concerns over Trump’s trade policies and slowing economic growth, has led to weaker consumer sentiment and cautious corporate outlooks.

Barclays strategist Emmanuel Cau noted rising uncertainty among investors.

The selloff has also hit AI-related stocks, with Nvidia down 17% and the Magnificent Seven ETF falling 16%.

Russia is using cryptocurrencies in its oil trade with China and India to skirt Western sanctions, according to four sources with direct knowledge of the matter.

While Russia has publicly encouraged the use of crypto and last summer passed a law to allow digital currency payments in international trade, its use in the country's oil trade has not previously been reported.

Some Russian oil companies are using bitcoin, ether and stablecoins such as Tether to smooth the conversion of Chinese yuan and Indian rupees to Russian roubles, the sources said, adding that it is a small but growing part of Russia's overall oil trade, which according to the International Energy Agency was worth $192 billion last year.

Summary

U.S. consumer confidence fell for the third straight month in March, reaching a 29-month low of 57.9, according to the University of Michigan survey.

Sentiment has dropped 22% since December 2024, before President Trump took office. Consumers expect worsening inflation and economic instability, partly due to concerns over tariffs.

Survey director Joanne Hsu cited policy uncertainty as a major factor.

Confidence declined across all political groups, with Democrats' expectations down 24%, Independents' down 12%, and Republicans' down 10%.

Summary

Tesla is rapidly losing market share in China as local brands like BYD and Xiaomi offer cheaper, more advanced electric vehicles.

BYD sold 481,318 cars in the first two months of 2025, far outpacing Tesla’s 60,480, a 14% decline from last year. Chinese consumers now see Tesla as overpriced and lagging in self-driving technology.

Economic slowdowns and government incentives have further reshaped the market.

Tesla recently introduced a limited version of Autopilot in China, but rivals remain more competitive, with some models costing half as much as a Tesla.

Summary

U.S. farmers face mounting financial struggles due to Trump’s tariffs and deep cuts to Agriculture Department programs.

Tariffs have triggered retaliatory measures, raising costs and shrinking export markets for crops like corn, wheat, and soybeans.

Federal aid freezes have left farmers without grants and loans, jeopardizing operations. Some, like blueberry growers in Maine and West Virginia farmers launching a local brand, now risk severe losses.

Farmers warn prolonged trade wars could cause irreversible damage, but Trump insists his policies will create better long-term markets despite short-term pain.